BUTLER COUNTY —With the population of Americans
ages 60 and older growing faster than previously estimated, financial institutions are joining law enforcement in helping seniors being swindled of their life savings by scam artists.
“Elder
financial exploitation has been called the crime of the 21st century,
and fighting it has never been more urgent,” Richard Cordray, a former
Ohio attorney general who is now director of the Consumer Financial
Protection Bureau in Washington, recently told
The Columbus Dispatch.
Though financial exploitation is one of the most common forms of elder abuse, it also is one of the least reported, he said.
Many victims are too embarrassed to pursue criminal action, Cordray said. Others are too emotionally or physically frail.
True Link Financial, a private financial-services company, estimates that
elder exploitation costs victims about $36.5 billion a year — 12 times more than previously thought.
Older
adults make attractive targets because they often have significant
assets or equity in their homes and a steady source of income, such as
Social Security or a pension, Cordray said.
Many also have cognitive decline or physical disabilities and are isolated from family and friends.
Many financial groups said protecting customers, especially the most vulnerable, is a top priority.
“Many
banks already have procedures in place to detect fraudulent activity
within older adults’ accounts,” said Christine Mulvin of HealthPath
Foundation of Ohio, which serves 36 Ohio counties, including Butler
County.
“Trained tellers look for signs of fraud, including large
or frequent cash withdrawals, new account transfers or other unusual
transactions. Another sign tellers look for is when another individual
deposits checks for an older adult or checks begin being deposited
through an ATM or mobile device,” she said.
Financial intuitions
are using fraud detection software that looks for suspicious activity in
an older adults’ account and special limits on older adults’ accounts
can also be put in place, such as cash withdrawal limits or geographic
limits that only allow for withdrawals within a certain region,
according to Mulvin.
Still, financial institutions also have to be careful about what personal information they share if they detect fraud.
Banking
institutions are generally able to report suspected financial fraud to
authorities without violating privacy provisions in federal banking
laws. Last year, the Ohio House also passed a bill that would add
financial institutions to the list of mandatory reporters.
Technology
has created new types of fraud and scams to swindle seniors out of
their life savings, according to Laurie Petrie, vice president of
communications for the Council on Aging of Southwestern Ohio, an agency
that advocates on behalf of older adults and people with disabilities in
Butler, Clermont, Clinton, Hamilton and Warren counties.
“A lot
of elderly people trust caller ID and think that it will keep them
safe,” Petrie said. “Now scammers have software to use a number that
someone will recognize.”
“New and more sophisticated methods that
are happening every day are being developed to rip off our seniors,” she
said. “And as soon as you figure out a way to stop something like this
from happening, the scammers find a way around it.”
In 2011, the Butler County Prosecutor’s Office started the Butler County Crimes Against the Elderly Task Force.
Susan
Monnin, community outreach director for the prosecutor’s office, said
the task force is working, but the scams are unfortunately finding
success too.
“These scammers prey on the most vulnerable and have
no conscience whatsoever,” she said, adding that they appeal to a
senior’s emotions.
“These scammers call the elderly and appeal to
their emotional side of the brain because they are lonely,” Monnin said.
“The offer of a trip or lottery win appeals to that side of the brain
rather than the rational side. You get a call saying a loved one needs
money or they are going to jail and often times that scam can work.”
The
Ohio attorney general’s office also has increased the investigation and
prosecution of elder-abuse cases and improved victims’ access to
services. It is working to develop a new advanced training course for
law enforcement on the topic and will hold a financial-exploitation
symposium in northeastern Ohio in August.
“The victim is who we
need to worry about,” Attorney General Mike DeWine told the Dispatch.
“The real tragedy of these things is you end up with a person who
doesn’t feel safe or secure any longer. It’s not just about losing
money.”
Full Article & Source:
Banks join fight to help financial exploitation of seniors
